Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Information

12. SEGMENT INFORMATION

The Company’s revenues are derived from sales of its Enterprise division products which include its Desktop Solutions, Datacenter and Cloud Solutions and related technical services and from sales of its Online Services division’s Web collaboration, connectivity and remote support services. The Enterprise division and the Online Services division constitute the Company’s two reportable segments.

The Company does not engage in intercompany revenue transfers between segments. The Company’s chief operating decision maker (“CODM”) evaluates the Company’s performance based primarily on profitability from its Enterprise division products and Online Services division products delivered as a subscription service. Segment profit for each segment includes certain research and development, sales, marketing, general and administrative expenses directly attributable to the segment as well as other corporate costs allocated to the segment and excludes certain expenses that are managed outside of the reportable segments. Costs excluded from segment profit primarily consist of certain restructuring charges, stock-based compensation costs, amortization of product related technology, amortization of other intangible assets, net interest and other (expense) income, net. Accounting policies of the Company’s segments are the same as its consolidated accounting policies.

International revenues (sales outside of the United States) accounted for approximately 43.2%, 42.7% and 43.6% of the Company’s net revenues for the year ended December 31, 2011, 2010, and 2009, respectively. Net revenues and segment profit for 2011, 2010 and 2009 classified by the Company’s reportable segments, are presented below:

	2011			2010			2009
	(In thousands)
Net revenues:
Enterprise division	$	1,778,646		$	1,514,045		$	1,305,911
Online Services division	427,746			360,617			308,177
Consolidated	$	2,206,392		$	1,874,662		$	1,614,088
Segment profit:
Enterprise division	$	504,883		$	403,722		$	308,609
Online Services division	76,147			86,506			76,849
Unallocated expenses (1):
Amortization of intangible assets	(71,131		)	(64,783		)	(68,889		)
Restructuring	(24		)	(971		)	(26,473		)
Net interest and other income	13,531			13,104			15,215
Stock-based compensation	(92,909		)	(103,758		)	(111,419		)
Consolidated income before income taxes	$	430,497		$	333,820		$	193,892

⁽¹⁾  Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments.

Identifiable assets classified by the Company’s reportable segments are shown below. Long-lived assets consist of property and equipment, net, and are shown below.

	December 31,
	2011		2010
	(In thousands)
Identifiable assets:
Enterprise division	$	3,619,989	$	3,386,392
Online Services division	479,552		317,208
Total identifiable assets	$	4,099,541	$	3,703,600

	December 31,
	2011		2010
	(In thousands)
Long-lived assets, net:
United States	$	223,076	$	200,319
United Kingdom	28,344		29,310
Other countries	26,009		20,853
Total long-lived assets, net	$	277,429	$	250,482

The increases in identifiable assets are primarily due to goodwill and intangible assets recorded in conjunction with the Company's 2011 Acquisitions. See Note 3 for additional information regarding the Company’s acquisitions.

In fiscal years 2011, 2010 and 2009, one distributor, Ingram Micro, accounted for 17%, 17% and 14%, respectively, of the Company’s total net revenues. The Company’s distributor arrangements with Ingram Micro consist of several non-exclusive, independently negotiated agreements with its subsidiaries, each of which cover different countries or regions. Each of these agreements is separately negotiated and is independent of any other contract (such as a master distribution agreement). None of these contracts were individually responsible for over 10% of the Company’s total net revenues in each of the last three fiscal years. In fiscal years 2011, 2010 and 2009, there were no resellers that accounted for over 10% of the Company’s total net revenues. Total net revenues associated with Ingram Micro are included in the Company's Enterprise division.

Revenues by product grouping for the Company’s Enterprise division and Online Services division were as follows for the years ended:

	December 31,
	2011		2010		2009
	(In thousands)
Net revenues:
Enterprise division
Desktop Solutions revenues(1)	$	1,278,798	$	1,137,326	$	1,015,234
Datacenter and Cloud Solutions revenues(2)	385,518		298,649		231,396
Enterprise technical services(3)	91,496		59,371		41,288
Other(4)	22,834		18,699		17,993
Total Enterprise division revenues	1,778,646		1,514,045		1,305,911
Online Services division revenues	427,746		360,617		308,177
Total net revenues	$	2,206,392	$	1,874,662	$	1,614,088

⁽¹⁾  Desktop Solutions revenues are primarily comprised of sales from the Company’s desktop virtualization product, XenDesktop, and the Company’s application virtualization product, XenApp, and related license updates and technical support.

⁽²⁾  Datacenter and Cloud Solutions revenues are primarily comprised of sales from the Company’s cloud networking products which include NetScaler and Branch Repeater and the Company’s CloudPlatform products which include XenServer, CloudStack and CloudPortal and related license updates and maintenance.

⁽³⁾  Technical services revenues are primarily comprised of revenues from consulting and product training and certification services.

⁽⁴⁾  Other is primarily comprised of revenues from other products, including Enterprise division's ShareFile SaaS products.

Revenues by Geographic Location

The following table presents revenues by segment and geographic location, for the years ended:

	December 31,
	2011		2010		2009
	(In thousands)
Net revenues:
Enterprise division
Americas	$	993,062	$	837,689	$	696,205
EMEA	576,953		519,828		480,720
Asia-Pacific	208,631		156,528		128,986
Total Enterprise division revenues	1,778,646		1,514,045		1,305,911
Online Services division
Americas	367,260		330,493		288,262
EMEA	50,711		23,258		16,439
Asia-Pacific	9,775		6,866		3,476
Total Online Services division revenues	427,746		360,617		308,177
Total net revenues	$	2,206,392	$	1,874,662	$	1,614,088

Export revenue represents shipments of finished goods and services from the United States to international customers, primarily in Latin America and Canada. Shipments from the United States to international customers for 2011, 2010 and 2009 were $106.0 million, $95.0 million and $74.5 million, respectively.